Sun Pharma Shone Brighter Right in 2011: Penn Schoen Berland

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New Delhi, India May 01 2014 For us at PSB, Sun Pharma shone brighter right in 2011 Prediction, to some, involves maximising the ratio of signal to noise, with the signal being the predictable component and the noise been unpredictable events.

At Penn Schoen Berland, we use research to generate insights that help our clients win and that involves looking ahead and not behind. It is this approach that helped us pointedly predict the potential spurt in the stature of Indian healthcare giant Sun Pharmaceuticals exactly three years ago.

In 2011, a study – The PSB 50 – distinctly signposted Sun Pharma with the brightest future among the healthcare firms in India. The other pharmaceutical companies figuring in the study include Piramal, Cadila Pharmaceuticals, Dr Reddy’s and Cipla.

“Sun Pharma was seen to have positive net future potential, indicating that Bizfluentials TM at that point in time expected Sun Pharma’s best days to be ahead,” Mr Ashwani Singla, MD and CEO, PSB, Asia, said reminiscing the study. Sun Pharma’s net future potential was at 56, compared to 23-26 for its competitors. It also featured No. 2 on our most recognised Indian Multinational by Global Bizfluentials™ behind the TATA Group.

“This was greeted with a certain degree of skeptism by many, some even suggesting that we should take the company off the list, but we stuck our necks out as we believed in the insights we had generated. Nothing gives me greater pleasure to see the company live to its promise and potential,” Mr Singla added.

Sun Pharma also emerged as a strong global brand, receiving favourability and net future potential across regions with extraordinary performance in US. Though awareness in EU then was low, the company had been able to earn favourability indicating those who were aware, they had positive associations.

“However, the study also showed that some Indian tigers abroad suffer from domestic reputational challenges. Whilst Sun Pharma’s global rank was 2, its domestic rank was 50, perhaps the source of the level of skeptism with its global rank. Post-acquisition of Ranbaxy, this challenge would only rise due to increase in its scrutiny. It is must for the management to recognise that it needs proactive and

definitive action blended with the right communication to protect and nurture its growing reputation.”

Mr Singla added.

The recent acquisition of pharmaceutical behemoth Ranbaxy by Sun Pharmaceuticals has created the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India. The new entity will have operations in 65 countries, 47 manufacturing facilities across 5 continents, and a significant platform of specialty and generic products marketed globally.

“With size comes fame but also brings public scrutiny of a high magnitude. Every word and action of the company is closely monitored by a multitude of stakeholders and one minor infraction becomes a major crime. Sun would be well advised to up the ante of its reputation monitoring and management to be ahead of the curve and not behind it,” Mr Singla added.

About The PSB 50 The audience for this study was limited to Bizfluentials™, defined as people who follow more than one source of financial media daily or several times a week. Aged 21-74, they work with a company that trade or operates internationally. The audience of Bizfluentials™ polled included C-suite and upper management business executives, financial industry professionals, and members of the financial media.

The PSB 50 evaluated 61 Indian multinationals, meaning companies which operate or are traded internationally, established and promoted by Indian nationals in India, with annual revenue over Rs 1000 crores, as well as their leaders, in terms of awareness and regard.

Fieldwork was conducted online among 600 Bizfluentials in India, the US, UK, France, Germany, China, Indonesia, Japan, Malaysia, Singapore and South Korea during the first two weeks of March 2011.

The margin of error for the total sample is ± 4.0%, and larger for subgroups.

About Penn Schoen Berland, South Asia Penn Schoen Berland (PSB) is a ‘Global Research based Strategic Communication Advisory’ that helps clients understand and mould public opinion to negotiate some of their toughest corporate image & corporate affairs challenges. For over thirty years PSB has used research to leverage unique insights about public opinion, to give our clients a competitive edge. PSB serves Fortune 100 Corporations, leading Hollywood Studios and has helped elect over 30 Presidents and Prime Ministers around the world.

PSB, South Asia office was established early 2011 in Gurgaon, in the National Capital Region of India and serves blue-chip clients comprising of leading Indian & transnationals corporations as well as leading political parties and candidates aspiring for a public office in the Indian Sub-continent & South East Asian region. The office is led by Ashwani Singla, MD & CEO, Asia and formerly the CEO of Genesis Burson-Marsteller (GBM) & Board Member, Burson-Marsteller (B-M), Asia Pacific.

PSB is a part of Y&R Brands and WPP. For more information visit www.psbresearch.in ####